Naver to acquire Poshmark for $1.6 billion

4 Oct 2022 , 10:37 AM

As a strategic investment to penetrate the US e-commerce sector, South Korean software company Naver Corp. has agreed to pay $1.6 billion to purchase Poshmark Inc., a US garment resale platform company.

For $17.90 in cash, Naver will buy all of Poshmark’s issued and outstanding shares. The transaction is anticipated to be completed in the first quarter of 2019.

Poshmark’s cash assets are taken into account in the $1.6 billion deal, and its enterprise value is approximately $1.2 billion.

Naver and Poshmark said on a conference call regarding the deal that Poshmark is the largest fashion consumer-to-consumer marketplace in North America with 80 million registered members, led by active Millennial and Gen Z users.

The partnership would integrate Poshmark’s shopping platform with Naver’s live streaming, artificial intelligence, and picture recognition technologies, which are a major force in South Korean e-commerce.

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